PCI Biotech 1H 2025 slides reveal program termination and cash runway concerns

Introduction & Market Context

PCI Biotech Holding ASA (OB:PCIB) presented its First Half-Year 2025 Interim Report on August 29, 2025, revealing significant challenges that threaten the company’s future. The biotech firm, which was developing technology to enhance gene therapy manufacturing processes, has discontinued its main program and now faces serious financial constraints.

The presentation comes amid a difficult period for the company, with its stock price dropping to NOK 0.4 as of August 28, 2025, representing a 6.99% decline and sitting well below its 52-week high of NOK 2.22.

Executive Summary

The most critical revelation from PCI Biotech’s presentation is the discontinuation of its photochemical internalization (PCL) program for gene therapy manufacturing. Despite initially promising results in upstream yield, the company failed to translate these into tangible manufacturing benefits, leading to the program’s termination.

CEO/CFO Ronny Skuggedal presented financial results showing accelerating losses and a rapidly depleting cash position, with runway extending only into Q4 2025. The presentation explicitly stated "significant doubt on the ability to continue operations," signaling serious going concern issues.

Program Discontinuation Details

PCI Biotech’s presentation provided specific data explaining the decision to terminate its gene therapy manufacturing enhancement program. While initial results showed promise in certain metrics, the company ultimately determined that the technology did not deliver sufficient overall benefits.

As shown in the following R&D milestones and analysis chart, the company’s PCL technology demonstrated improved upstream AAV yield compared to standard lysis methods, along with reduced host-cell impurities:

However, the presentation revealed that "net AAV yield after initial downstream processing was inconclusive, attributed to variability and technical issues in downstream processing." Despite reproducing promising upstream yield results in the first half of 2025, this did not translate to "convincing manufacturing benefit in terms of net yield or other cost savings."

The company concluded that "insufficient progress has extended project timelines and increased resource requirements, elevating the overall project risk to an unacceptable level," leading to the decision to discontinue further development.

Detailed Financial Analysis

PCI Biotech’s financial situation has deteriorated significantly compared to the previous year, as illustrated in the following financial summary:

Key financial metrics for the first half of 2025 include:

• Cash position of NOK 13.6 million as of June 30, 2025, down 55% from NOK 30.5 million in 1H 2024
• Operating loss of NOK 11.9 million, worsening from NOK 8.3 million in 1H 2024
• Net loss of NOK 11.5 million, compared to NOK 7.4 million in 1H 2024
• Public grant income declined to NOK 1.4 million, a 60% decrease from NOK 3.4 million in 1H 2024
• Negative cash flow from operations of NOK 12.5 million, compared to NOK 10.5 million in 1H 2024

These figures represent a stark contrast to the more optimistic tone from the Q4 2024 earnings report, which had highlighted "remarkable revenue growth of 115%" and "strong momentum" in the stock price. The current presentation explicitly states there is "significant doubt on the ability to continue operations."

Forward-Looking Statements & Going Concern Issues

With its main program discontinued and limited financial resources, PCI Biotech’s presentation outlined a stark assessment of its future prospects:

The company acknowledged "material uncertainty about the ability to secure additional financing and continue operations." Management indicated they are now focusing on "value preservation and evaluating future options," though no specific strategic alternatives were detailed.

The cash runway extending only into Q4 2025 creates urgent pressure for the company to identify a path forward. This timeline gives management approximately one quarter to secure additional funding or pursue other strategic options such as a potential sale, merger, or significant restructuring.

Market Reaction and Outlook

The market has responded negatively to PCI Biotech’s deteriorating position, with the stock trading at NOK 0.4 as of August 28, 2025, representing a significant decline from its 52-week high of NOK 2.22. The 6.99% drop on the day before the presentation suggests investors were already anticipating negative news.

For investors and stakeholders, the presentation provides little reassurance about PCI Biotech’s future. With its main program discontinued and limited cash reserves, the company faces existential challenges in the coming months. Management has promised to provide "further information and updates on this process when applicable," but the immediate outlook remains highly uncertain.

The contact information for CEO/CFO Ronny Skuggedal was provided for stakeholders seeking additional information:

Full presentation:

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